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For the first time in five years, the average price of a home in the GTA has dropped below $1 million. According to the Toronto Regional Real Estate Board, the average sale price last month was down 6.5 per cent compared to the same period last year, while home sales declined by 19.3 per cent.

The slowdown is being felt across the market. Homes are spending more time on the market, prices are softening, and experts expect these conditions to continue in the months ahead.

Buyers Take a More Cautious Approach

For buyers, particularly first-time purchasers, the changing market has created more opportunity and flexibility. Ryan Rodriguez, who has viewed roughly 15 homes over the past few months, says the slower pace has allowed him and his partner to approach the process without pressure.

“Timing-wise, we’re very fortunate. It allows us to really take our time and see where our money will get us,” Rodriguez said.

Despite lower prices and easing interest rates, many potential buyers remain cautious. Ongoing economic uncertainty and concerns about job stability continue to influence purchasing decisions.

“I think as young people, job stability is always a question mark, especially during times like this,” Rodriguez added.

Brayden’s Perspective From the Front Lines

Brayden, a Toronto real estate agent featured in the report, says the shift to a buyer’s market is clear in day-to-day transactions.

He notes that properties are taking longer to sell compared to previous years, and buyers are no longer rushing into decisions. Multiple-offer situations have become far less common, allowing buyers more room to negotiate and include conditions that were often waived during the height of the market.

Brayden also explains that while the average price falling below $1 million is making headlines, the impact varies depending on property type and location. Entry-level homes and condominiums are seeing more downward pressure, while well-priced, move-in-ready properties in desirable neighbourhoods continue to attract interest, at a slower pace.

For sellers, Brayden says pricing strategy has become critical. Homes priced in line with market conditions are still selling, while overpriced listings are more likely to remain on the market longer.

A Broader National Trend

Toronto is not alone in experiencing a market slowdown. Several other major Canadian cities reported declining home sales last month.

In Vancouver, sales were down nearly 30 per cent compared to the year before. Calgary saw a decrease of nearly 15 per cent, while Edmonton sales dropped by 27.6 per cent. Montreal was an exception, with home sales increasing by approximately 8 per cent in 2025.

Jason Mercer, chief information officer at the Toronto Regional Real Estate Board, says many buyers remain on the sidelines as they wait for greater economic certainty.

“There is concern around our trade relationship with the United States, as well as other geopolitical issues that are contributing to uncertainty,” Mercer said. “If we see a more stable economic outlook in the months ahead, that could encourage more households to take advantage of improved affordability.”

Outlook for 2026

The Toronto Regional Real Estate Board predicts that slower sales and price weakness will continue through at least the first half of 2026. This follows a challenging 2025, which recorded the lowest number of home sales in 25 years.

For now, the market remains in a period of adjustment, offering buyers more time and choice while requiring sellers to adapt to changing conditions.

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Lome Irwin’s Perspective

The current softening in the Toronto housing market reflects a natural recalibration after several years of intense competition and rapid price growth.

More balanced conditions are widely seen as healthy for the market. Buyers are gaining the time and clarity needed to make informed decisions, while sellers are being encouraged to price homes based on current realities rather than peak-era expectations.

In this environment, success depends heavily on local expertise and strategic execution. Properties that are properly prepared, well marketed, and priced with precision continue to attract qualified buyers, even as overall sales volumes remain subdued.

Demand has not disappeared, particularly among families searching for long-term homes in established neighbourhoods. However, buyers are more selective and value-driven, placing greater emphasis on quality, location, and long-term suitability.

Looking ahead, the months to come are expected to favour informed decision-making and disciplined strategy, as both buyers and sellers navigate ongoing economic uncertainty and adjust to a slower, more deliberate market pace.

Each year, January and February offer some of the clearest signals about where the real estate market may be heading. While activity is typically quieter in winter, early-year numbers often reveal shifts in supply, pricing, and buyer behaviour that shape the spring market ahead.

Here’s what recent data from the Toronto Regional Real Estate Board (TRREB) suggests about the year to come.

1. Fewer Bidding Wars

One of the most important trends heading into 2026 is the continued increase in available listings.

TRREB reported that new listings rose about 10% year-over-year in 2025, while sales declined, leaving more inventory available to buyers. 

This shift has created a more balanced market compared with the tight conditions seen earlier in the decade. Higher supply typically means:

• More negotiating power for buyers
• More time to make decisions
• Less frequent bidding wars in many segments

For families planning a move in 2026, this increased selection may be one of the defining features of the year.

2. Prices Softened, Improving Affordability

TRREB data shows that the average selling price in the GTA in 2025 was about $1,067,968, down 4.7% from 2024. 

Monthly data has continued to reflect this trend. For example, recent reporting indicates:

• January home sales declined year-over-year
• The average selling price fell to roughly $973,000, dipping below the $1M mark for the first time in several years. 

While no one wants to see values drop sharply, moderate price adjustments can improve affordability and allow more buyers to enter the market – often setting the stage for a healthier long-term cycle.

3. Sales Activity Remains Cautious, but Stable

TRREB reported 62,433 home sales in 2025, down 11.2% from the previous year, reflecting ongoing caution among buyers. 

Early 2026 numbers suggest this cautious sentiment continues, with year-over-year declines in sales as some households adopt a “wait-and-see” approach amid economic uncertainty. 

However, TRREB’s outlook indicates that sales levels are expected to remain broadly in line with recent years, rather than collapse, suggesting a market that is stabilizing rather than weakening dramatically. 

4. Days on Market Are Rising Slightly

Another early-year signal is the pace of sales. Recent figures show average days on market increasing to roughly 45 days, indicating homes are taking longer to sell than in the peak years. 

In practical terms, this means:

• Buyers have more time to evaluate options
• Sellers need stronger pricing and marketing strategies
• Preparation and presentation matter more than ever

This trend is especially relevant in midtown Toronto, where well-prepared homes still attract strong interest.

5. Why Early-Year Trends Matter

January and February don’t predict the entire year, but they do establish momentum.

When we see:

• Higher inventory
• Moderating prices
• Cautious but steady sales

This often points toward a balanced spring market, rather than the extreme seller or buyer conditions seen in previous cycles.

TRREB’s own outlook suggests that improved affordability and pent-up demand could support increased activity once consumer confidence strengthens. 

6. What This Means for Midtown Toronto Families

For buyers, 2026 may offer:

• More choice
• More negotiating room
• Less urgency than in previous years

For sellers, it means:

• Strategic pricing is essential
• Presentation and marketing matter more
• Well-located, family-friendly homes still perform strongly

Markets change, but fundamentals such as location, schools, and lifestyle continue to drive long-term value in neighbourhoods across midtown.

Thinking About Making a Move This Year?

If you’re considering buying or selling in 2026, the team at Lome Irwin is always happy to share local insight and help you understand what these broader trends mean in your specific neighbourhood. 

A conversation early in the year can often make the biggest difference when spring arrives.

Reach out at clientcare@lomeirwin.com

Family Day weekend in Toronto usually brings special programming across museums, community spaces, and winter attractions. Many of these are a short drive or subway ride from midtown.

Museums with Special Family Day Programming:

• Art Gallery of Ontario: hands-on artmaking, music, and creative activities designed for families during the Family Day weekend. 
• Bata Shoe Museum: family activities and interactive exhibits often run on Family Day. 
• ROM: The Lunar New Year takes centre stage this Family Day weekend with exciting programming, live performances and themed activities to enjoy with family and friends. 

Winter Festivals, Skating & Outdoor Events:

• Harbourfront Centre: Family Day weekend often features skating, crafts, storytelling and performances for kids. 
• Evergreen Brick Works: Free public skating and seasonal family programming throughout winter. 
• Sweet City Fest at Stackt Market: An event filled with treats and fun, including live music & entertainment, workshops, vendor markets, family day specials.
• Family Fun Fest at Arcadia Earth (the Well): Families can explore the immersive Arcadia Earth exhibit alongside added programming designed for kids and parents alike, including drop-in sustainable crafts, cotton candy and music 

Interactive & High-Energy Activities:

• Kids Fest TO: inflatables, obstacle courses, games, stage shows and meet-and-greets running across the Family Day weekend. 
• Interactive gaming facilities like Activate offer physical, team-based challenges for kids 6+ that combine puzzles and movement. 

Simple, Local Options Still Matter:

While big events are fun, many midtown families still spend part of the day close to home:

• Skating at neighbourhood rinks
• Tobogganing at parks like Cedarvale Park or Eglinton Park
• Hot chocolate at a favourite local café
• Fireside in the Distillery – Cozy fire pits, hot chocolate, and S’mores at the Distillery District 

Often, the best Family Day includes a mix of both – one outing and a relaxed afternoon at home. One of the reasons families choose neighbourhoods like Lytton Park and surrounding midtown communities is how easy it is to plan. Within a short drive or transit ride, you can be skating outdoors, exploring a museum, or attending a special event.

And sometimes, those simple, local moments are the ones children remember most.

If you’re considering a move this year, or simply curious about what homes are available in midtown Toronto, reach out to us at clientcare@lomeirwin.com. We specialize in helping families find homes that truly fit the way they live.

SYDNIA YU for Globe + Mail

TORONTO

SPECIAL TO THE GLOBE AND MAIL

PUBLISHED JANUARY 28, 2026

Listen to this article

56 Perth Ave., Toronto

Asking price: $1,299,000 (October, 2025)

Selling price: $1.51-million (October, 2025)

Previous selling price: $827,880 (February, 2020)

Taxes: $6,251 (2025) 

Days on the market: Eight 

Listing agents: Carol Lome and Brayden Irwin, Royal LePage Real Estate Services Ltd., Johnston and Daniel Division

The action

This freehold townhouse was priced under $1.3-million, which the seller hoped would attract multiple offers, similar to some of the other townhouses recently sold in the enclave alongside the West Toronto Railpath. All went as planned, with four bidders all presenting offers above the asking price.

“We priced that with an offer date with the expectation it would get fairly good activity, and we’d likely have more than one interested party,” said agent Brayden Irwin. 

“We had looked at some past listings in the complex, and it seemed like the ones that were listed with that strategy tended to have good results.” 

The $1.51-million payout for this five-year-old townhouse also suggests strong buyers demand for turnkey spaces. 

“It’s beautiful and modern with all the features young professionals would dream of, like high ceilings, a modern aesthetic, and a high-end kitchen,” said Mr. Irwin. 

“Our sellers also hired an interior design firm and spent quite a bit of money to make the space their own rather than the standard builder finishes.” 

What they got 

This three-storey townhouse has 1,308 square feet of living space, a street-level entrance and a rear garage accessed through a recreation area in the basement. 

The main floor has a kitchen between a dining area and a living room with sliding doors to a terrace. 

A rooftop balcony is accessed from the largest of three bedrooms. The bedroom also has a walk-in closet and a five-piece bathroom. There are two more bathrooms in the house. 

Tied land fees are $199 each month. 

The agent’s take

“It’s a great location, and you can get in and out of the city really easily,” Mr. Irwin said. 

“It’s a short walk to the UP Express.”

For buyers, sellers, and industry professionals alike, the past twelve months have required patience, flexibility, and a willingness to adapt as market conditions continued to evolve.

While the headlines were often loud, the real story of 2025 played out quietly with thoughtful conversations about timing, expectations, and long-term goals.

A Shifting Market

This year brought impactful political and economic change on both sides of the border. New leadership at the federal level, shifting trade dynamics, and ongoing global uncertainty all influenced confidence closer to home. Meanwhile, multiple interest rate cuts from the Bank of Canada offered some relief – but not without hesitation from buyers who were still navigating affordability concerns.

These overlapping forces created a market that felt unpredictable at times, even for experienced homeowners and investors. The pace of change often exceeded expectations, reinforcing the importance of having a clear strategy rather than relying on past patterns.

Early Momentum, Followed by a Market Reset

The year began with encouraging energy. Limited inventory in the first quarter sparked renewed buyer confidence, driving early activity. As spring unfolded, a surge of new listings reshaped the landscape, easing competition and recalibrating momentum.

By summer, buyers became more deliberate, and sellers were forced to reassess pricing strategies. As we moved into the fall, activity steadied. Transactions began to increase modestly because expectations became more realistic.

Condo Market: Subtle Signs of Balance

The condominium segment showed early signs of stabilization toward the end of the year. Inventory levels declined modestly, helping relieve some of the pressure that had built up over previous cycles. With several development projects paused or delayed, resale supply began to feel more manageable.

Sales volumes remain below historical norms, and prices have softened slightly year over year. That said, the pace of adjustment has also slowed, suggesting the market may be finding its footing. Some transactions are now aligning with values last seen in the late 2010s – a notable recalibration after years of rapid appreciation.

Freehold Homes

Traditionally more insulated from volatility, the freehold market experienced a more noticeable shift in 2025. Inventory rose significantly, while buyer activity declined, placing downward pressure on pricing.

For many homeowners, this adjustment felt unfamiliar. Yet it also marked an important rebalancing – one that reflects broader economic realities rather than short-term market sentiment. While challenging, this phase has helped reset expectations and reintroduce thoughtful decision-making into the process.

Looking Towards 2026 

As we look ahead, cautious optimism feels appropriate. Lower inventory levels may support stability in the early part of 2026, particularly as some sellers choose to wait on the sidelines. At the same time, transactions across the GTA remain historically low, reminding us that recovery will likely be gradual. 

Progress will depend on steady improvements across employment, infrastructure, and economic confidence. While pricing may continue to adjust in the short term, a more balanced market appears increasingly achievable in the year ahead.

Gratitude in a Year That Asked More of Everyone

What stood out most this year wasn’t just the market itself, but the people navigating it. Transactions often took longer and required more collaboration than in years past. Along the way, relationships deepened – conversations extended beyond real estate, and trust became the foundation of every decision.

There were moments of shared relief, quiet wins, and genuine encouragement between clients who had never met but understood the journey each was on. That sense of connection has been one of the most meaningful aspects of 2025.

We are deeply grateful to the clients who placed their trust in our team this past year. Navigating today’s market requires clarity, patience, and partnership, and it’s a privilege to walk alongside our clients through such meaningful decisions. 

As we look ahead, we do so with optimism, grounded in experience, and encouraged by resilience. We are thankful for the community we continue to build together.

If you’re considering a move in 2026 or simply want to better understand how the current market may impact your plans, we’re always here as a resource. Whether it’s a quick conversation or a longer-term strategy, our team is ready to help you move forward with confidence.

Wishing you a healthy, fulfilling, and successful year ahead.

Toronto in December feels like a city made for the holidays. Streets glow with twinkling lights, neighbourhoods come alive with festive markets, and beloved annual events draw families from across the city. Whether you’re looking for charming local experiences or the big holiday classics, Toronto offers something for everyone.

1. The Distillery Winter Village 

November 16 – January 4, 2025 

The historic Distillery District transforms into a cozy, European-style holiday market each December. Expect artisan vendors, festive food huts, carolers, and a massive Christmas tree at the centre of it all.

(free before 4:00 PM)

Why it’s a favourite:
Cobbled streets, local craftsmanship, and perfect holiday photo backdrops.

2. Cavalcade of Lights at Nathan Phillips Square

November 29 – January 7

A long-running Toronto tradition, Cavalcade of Lights marks the start of the holiday season with the lighting of the city’s official Christmas tree.

What to enjoy:
• Live music and entertainment
• Ice skating under the lights + DJ Skate Nights
• Spectacular illuminated installations

3. Evergreen Brick Works Winter Village

Sundays Nov 30 – Dec 21 11am – 5pm

Evergreen Brick Works offers a relaxed, nature-oriented approach to the holidays. Expect local food vendors, outdoor activities, and wintery trails perfect for a weekend stroll.

Great for:
Families, dog-walkers, and anyone wanting a slower-paced festive outing.

4. Casa Loma’s Christmas at the Castle

December 5 – January 3

Toronto’s castle becomes a holiday dreamscape with themed rooms, grand décor, costumed characters and twinkling lights.

Don’t miss:
• The decorated Great Hall
• Outdoor light tunnel
• Seasonal performances

5. The Holiday Fair in the Square

December 11 – 21

Held in Nathan Phillips Square, this market blends a classic European holiday feel with local vendors and food stalls.

Perfect for:
Last-minute gift shopping and festive bites.

6. Yorkville Holiday Lights

November 22 – December 31

Yorkville’s streets shine with elegant displays and upscale holiday décor. Enjoy an evening walk, browse boutiques, or stop for a cozy drink at a nearby café.

Best time to go:
Early evening when the lights first come on.

7. Toronto Zoo’s Holiday Light Experience

December 7 – January 4

The zoo’s walk-through light festival highlights larger-than-life animal lanterns and themed zones.

Ideal for:
Families with younger kids or anyone who appreciates creative, interactive displays.

8. Local Neighbourhood Light Displays

Many Toronto neighbourhoods take their décor seriously. Some highlights include:

• The Beaches Boardwalk Christmas lights
• Old Cabbagetown’s heritage home displays
• Forest Hill and Moore Park’s elegantly lit streets

These walks make for beautiful, low-key December evenings.

9. Holiday Pop Up Bars

If you’re looking to add a little warmth and atmosphere to the season, consider a festive, holiday-inspired cocktail from some of Toronto’s most popular spots:

Miracle: Known for its immersive seasonal décor and playful, festive cocktails

Papi Chulo’s: Lively atmosphere with bold, winter-ready drinks

Compton Ave: Creative cocktails in a stylish, neighbourhood setting

Little Sister: Thoughtfully crafted cocktails with global inspiration

The Ritz-Carlton Toronto: Refined seasonal cocktails in an elegant lounge setting

Aleria: Sophisticated, European-inspired cocktails perfect for winter evenings

Enjoy the Best of Toronto’s Holiday Season

December is one of the most joyful times to explore Toronto. Whether you’re searching for gift ideas, planning outings with family, or simply soaking in the festive energy, the city offers endless ways to celebrate.

If you’re interested in local holiday ideas or want to explore ways to get your home ready for the season, reach out to the Lome Irwin Team at clientcare@lomeirwin.com.